NCLAT allows withdrawal under IBC Section 12A, emphasizes applicant's right.

The Hon'ble NCLAT allowed the Financial Creditor's withdrawal application under Section 12A of the IBC, 2016, in compliance with statutory provisions. The court clarified that Regulation 30A cannot override Section 12A and emphasized the applicant's right to seek withdrawal. The case underscored the inapplicability of Regulation 30A due to the CIRP initiation predating the amendment, making Section 12A applicable. With 100% CoC voting share, the court dismissed the insolvency petition, affirming the withdrawal based on Section 12A's satisfaction and Regulation 30A's inapplicability.

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Issues:
1. Withdrawal of insolvency petition under Section 12A of the Insolvency and Bankruptcy Code, 2016.
2. Compliance with regulations regarding withdrawal of petition.
3. Applicability of Section 12A and Regulation 30A in the case.

Analysis:
1. The Financial Creditor, Federal Bank Ltd, filed MA 1421/2018 seeking permission to withdraw the insolvency petition under Section 12A of the IBC, 2016. The request also included directions for the Corporate Debtor to pay CIRP expenses. The Resolution Professional also filed MA 1379/2018 for withdrawal. The CoC minutes indicated Federal Bank's consent for withdrawal, as it was the sole financial creditor with 100% voting share.

2. The Hon'ble NCLAT's order clarified that Regulation 30A cannot override Section 12A, emphasizing that only the applicant can move for withdrawal before the Adjudicating Authority. In compliance, Federal Bank filed for withdrawal, satisfying the statutory provision of Section 12A with 100% vote share. Regulation 30A(4) mandates the Resolution Professional to submit the application to the Adjudicating Authority within three days of CoC approval, but Section 12A does not impose such a restriction.

3. The case highlighted the effective date of the third amendment Regulation, 2018, and its applicability to CIRPs commencing after 3.7.2018. Since the CIRP began before this date, Regulation 30A was deemed inapplicable. Section 12A, inserted by Act No.26 of 2018, was clarificatory and applicable due to the Supreme Court's directions. The conditions of Section 12A were met with 100% CoC voting share, leading to the allowance of Federal Bank's withdrawal application.

In conclusion, MA 1421/2018 was disposed of, and Petition No CP (IB)- 1309/MB/2017 was dismissed as withdrawn, based on the satisfaction of Section 12A's conditions and the inapplicability of Regulation 30A in the case.

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